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Live.

Good morning and welcome.

In business today - global

gloom. The International

Monetary Fund warn the world

economy is sliding into

recession. Bonus target, US

law-makers vote the crackdown

on executive payouts. Why

picky some Indian companies can be

picky about who they hire.

Regional indices may open

lower.

For more on the market action I'm joined

action I'm joined by Julia

Lee from Bell Direct. Fears

the Fed's latest effort will

be too costly have sparked a

fall on wall street tnchs

move to buy back $300 million

was worrying the Treasury and

stock was being sold down. It

has had a good performance in

the month so far, in fact

since 6 March up until

has increased by yesterday the financial index

has increased by 54% so we

saw JP Morgan, Morgan

Stanley, Goldman Sachs losing

more than 5.5% but it was not

all doom and gloom. We saw

Oracle saying it would post

its first-ever diffident.

That stock rose 10% and good

for energy an material stock

but the Dow was down by 1.2%

t Nasdaq lost and the

t Nasdaq lost and the S

andPwas down by 1.3%. There

has been negative news out

about the future performance

of the US economy. Most of

the news was a non-event

because a lot came riding on

expectations or better than

expectation the. The leading

index measures what the US

economy's performance is

expected to be like for the

theyt 3 to 6 month. We saw a

decline of 30.4% in February

which but it bet are than

what economists forecast,

they expect add fall of half

a per cent. I will we saw the

initial jobless claims up

above 16,000 the worst

performance since 82 and the

performance for Philadelphia

so negative news coming

through but not to be unexpected. Let's look at

Europe now. We have seen

markets snap their losing streak. What can you tell

us?. We saw a good session in

London. We did see banks

doing well. Barclays up 17%

leading the banks up further

higher. We saw BHP Billiton

making ground after copper

reached 4000 a tonne so that

was good for material stocks.

The Bank of England said it

would my back corporate bond

so we saw the FTSE up by

0.3%. How do we expect

regional markets to trade?

They are expected to follow

the negative lead from Wall

Street. We see Japan close

forward a holiday which will

leave a gaping hole in the

region's performance. The

Hang Seng futures is down by

Hang Seng futures is down by

110 so weakness. The futures

are up 13 point. We could see

energy and material stocks

outperforming but financial

stocks will come under

pressure around the region

today. Let's look at what

is happening with currencies and commodities -

The myth hitch has

delivered its bleakest

forecast yet for the global

economy warning u is slipping

into resection and will

shrink by 1% this year. I

says developing economies are

being hit by recession thanks

will lower their GDP depot by

3 and 3.5% but the move myth

says the outlook for Japan is

gloomier than its major

trading partners. It has for

cast a deep 5.8% contraction

for Asia's biggest economy in

2009 with further negative

growth next week F the

predictions are realised

thribt first world Wade

recession since the end of

world war 2. Back in January

the International Monetary

Fund said it expected global

growth to shrink by 0.5%. It

has also urged more action

the address the issues of

toxic assets on bank balance

sheets. US law-makers have

voted overwhelmingly to restrict remuneration by

firms bailed out by

firms bailed out by

taxpayers. 90% taxation of

incomes above $250,00 at

companies that have received

Government aid. The move in

the House of Representatives

follows outrage over the

decision by the troubled

insurer AIG to award its

employees $165 million in

bonuses. The Senate is

considering similar

legislation and if that is

also passed the two Chambers

will need to reach a

compromise. The Treasury

Secretary has been under

pressure since the bonuses

became public. He said the

Government will do everything

it can to reverse the

payments. The world's largest

mobile phone carrier China

Mobile has posted a 30% rise

in annual profit to 16.(500)

000-0000. The result was due

to strong subscriber growth but earnings slowed at the

end of the year. The company

has warped the deepening financialal crisis will put

pressure on subscriber

take-up as local competition

gets tougher. There has been

disappointing results from China's E commerce giant

Alibaba which has posted a

57% slide on profits to over

$29 million missing market

expectations. Consumer

electronics giant Sony says

it will impose a salary

freeze on its full-time

workers in Japan for a year

beginning in and. It says the

move is necessary to cut

costs as it braces for a

massive loss due to the

deepening economic global

downturn. The rally ha has

recently pushed the dollar to

recently pushed the dollar to

its highest level since 2006

is in danger of crumbling.

That is due to fears the US

Federal Reserve plans to buy

treasuries will push down

returns on US assets and

prompt investors the seek returns elsewhere. The look

at this and how other major

fiscal moves to boost

economies impact currency

markets I'm joined by John

Noonan from Thompson

Financial. Welcome John Good

morning. The move by Federal

Reserve has sent the dollar

the its lowest level in two

months against the euro. What

can you tell us about that?

That is right. The market is

selling out the US dollars

they but as a safe haven

currency simply because the

Fed has signalled they will

print money and a lot of it,

it was a surprised decision

by the Fed to enter

quantitative easing. The

dollar was starting to loo

ground anyway because the

safe haven trade which was to

buy doll yartion during

heatenedries, averge because

despite the small fall on

Wall Street we saw a strong

rally in global equities over

the last two weeks so the

dollar losing ground but the

'quantitative easing' and the

surprise move by the Fed

certainly undermined the US

dollar. That brings me to my

next point. It appears this

Central Bank's move is de

basing the your than say or

de lewding its value

substantially so do you think

that will raise inflation

concerns? Further down the

track for sure. What the Fed

really signalled the the

market was they are not too

worried about the currency losing ground in the

short-term. In fact some

analysts belief to the fed

intentionally want the US

dollar the weaken to actually

Stoke inflation or fight off

deflation. Think the

short-term prospect of

inflation is quite low but

certainly the longer-term

implications for inflation

are very, very high because

the Fed will have to unwind

some of these enormous

programs they are putting in

now and a lot of analysts believe they will not be able

to did that fast enough when inflation does finally show

its ugly head again so the

long-term imply I cases for

the dollar and inflation are

neglect differ. Do you think

it is like think greenback

will lose its appeal as a

safe haven? Probably not. It

still the reserve currency of

the world and don't forget we

are seeing 'quantitative

easing' similar measures

announced by the Fed being undertaken by the Bank of

England a few weeks ago. The Swiss National Bank did the

same last week. The bank of

Japan is buying JGBs and

there is some speculation the

ECB may go down the same

'quantitative easing' ease

ever track as well so the

dollar will not lose its stay

as a safe haven because is

till the reserve currency.

The strong levels we saw at

the first part of this year

will erode some what. On

Taree serve currency issue

John Noonan, do you think

there is any point further

down the track probably well

off into the future that we

will see the reserve can you

currency change the something

else, maybe the euro? A

report came out a few days

ago in fact, a UN panel

suggested this the dollar

sees to be the reserve

currency and maybe a basket

of currencies with a high

representation by the euro.

Probably we will not see that

in the short-term. There is

still euro skepticism because

Europe does not have a

European Treasury so I think

that will be further down the

track but certainly that will

be up for discussion in the

coming month. What do you

think it would take for the reserve currency the change then? I think what will

happen is if we do not see

the US authorities in - an

particularly the Fed and the

Treasury scale back enormous

effort to increase the amount

of Treasury the scale back

the Fed balance sheet there will be a lack of faith in

the US dollar and very large

holders of dollars such as in

Asia, China, Japan, will

start the question the role

of the US dollar reserve

currency but I do not think

that is going to happen for

the short to medium term.

That is more of a long-term

issue. Let's move on and look specifically at the

Australian dollar. It has

risen to a near two-month

high on yield demand after

the US fed move. Why is

that? It is not only the

yield demand, that is part of

it t Reserve Bank of

Australia is one of the few

Central Banks not contemplating 'quantitative

easing' which is a de-basing

of the home your than say but

we have seen moves the relate

in the economy of central ban goes around the world has given the commodity structure

a lift. We are seeing gold,

base metals move higher,

copper moved to four-months

highs last month, moved to

over 5% so the commodities

index is moving higher which is supportive for the Australian dollar so it is a

safe bet we will get close to

the 70 cent level after

basing it above 60 cent a few

month ago. We are nearly out

of time but I want to look at

the yen before weing. Do you

think the yen will lose its

allure as a refuge to fund

the global financial crisis?

That has certainly been the

trend for the last few month.

We have not seen the

correlation between weak

markets, high risk being

aversion and a strong yen for

the last few month because

the Japanese economy has

deteriorated significantly

and the US dollar was the

only currency used in safe

haven. I think the yen is

strengthening a bit at the moment because of broad dollar weakness and the fact

we could not crack the 10

level so it is more technical

so I think the yen will

remain weak and will not be a

safe currency going forward.

Top automobile touted to the

world's cheapest is set to

start rolling off the factory

line in India next week.

Tata's Nano is going into production despite

significant setbacks and

there is a growing waiting

list of prospective buyers.

The first production models

of Tata Motors long-awaited

Nano are Street set to be

officially launched on

Monday. The event is

strigering excitement among

India's aspirational car

owner hoping to buy one of

the first four-seaters to hit

the floors. TRANSLATION:

There is a lot of hype in the

market, people are crazy

about it this, re waiting for

Tata's dream car. We are

working towards it. We are

getting a lot of queries and

we have a lot of good

response. We have over 2000

to 2500 bookings

already. Experts say the

economic downturn could take

the shine off the launch

which Tata Motors recording

its first-quarter loss in 7

years. But the Nano's price

tag around $2000US for basic model is a strong

drawcard TRANSLATION: I'm coming here to inquire for

the second time. There is a

craze among the people, even

I want to buy it. The car was officially launch would great

fanfare more than a year ago

and was due to go on sale

last October. But a dispute

forced the closure of the

main production plant for the

Nano. A lottery system is

being set up to choose the

first Nano owner because low

production capacity means

only 30,000 to 50,000 will be

built in the first year. The

arrival of the Nano is

expected to intensify competition in the market add

doping serious traffic

congestion in Indian cities.

Meanwhile in contrast Tata's

confidence one of the car

industry's most prestigious

event the British

international motor show in

London has been cancelled. It

appears car companies just

were not prepared the make a

commitment with sale at a

30-year low. It is the sort

of aspirational image the

motor industry want the tempt

people to spend their cash

but the current reality is different. In the south of

England thousands of cars lie

unsold waiting for buyers

while on the west coast of

America it is a similar story

with sales hit across the

globe. Many manufacturers

across the U k.d have been

hit hard. Honda closed its

Swindon plant. Nissan is

making 1000 redundant in

Sunderland. Now the slowdown

has claimed another victim. The British Motor Show is the

U K's largest consumer

exhibition, I has been

running for more than 100

years and last year nearly

half a million people turned

up but next year there will

be no visitors, no-one coming

to look at the new cars that

are on offer because for the

first time in its his trithe

show has been cancelled in

peacetime. It is the biggest

event. The manufacturers face

the biggest cost. They have

large number of people who

will be at the event obviously talking to

consumers so for them it is a major expense. As a industry

we are cutting costs across

the board in order to be able

to survive this difficult

situation and current

crisis. (Voice over -

"Looking around the show...)

The industry has recovered

before and the motor show

orange noisers say it will

recover too. Shares in the

Juice Group after Coca-Cola's

bid was knocked back.

Authorities rejected

Coca-Cola's $2.4 billion bid

for the company. The reason

was that it would have been

anti-competitive but analyst

say it is sure to be seen as

another example of rising

protectionism. The world's biggest soft drink make yeah

says it will focus on sales

of existing brand in China

and introducing new ones. For

many executives around the

world a stint in corporate

America used to be considered

a corporate milestone but not

any more. Now many ex-pats

are heading back home and

India companies are fuelling

inquiries. For four years

this family delivered

American dream. Gosh worked

for American Express and was

pulling down a good salary in

Arizona There were a lot of opportunity. His wife worked

too and had their first child

in America We had a pretty

good work-life balance in the

US which I miss because we

could have a social live in the evening, he would may

tennis, I would go to my own activities. That was a year

ago when the US economy first

began its steep decent and

the family decided it was

time to move pack the India

where they could be close to

family and because they

believed India was becoming

the new land of opportunity.

Analysts say they are not

alone in that belief. There are relatively more

opportunity here and we are

beginning to see an in-flow

of people in the West looking for opportunity here and

sending us resumes. While

opportunity do exist in India

it means beating fierce local

competition What will give

people a cutting-edge when

they move to India is

knowledge about countries or

markets they come from so either relationships they

have or the ability to work

with people and under that

culture that they can bring

to bear to drive the

commercial business of the

company. Gosh landed a

executive job. It did not

come with a office and his

workdays are longer but the

pay off is he is not worrying

about losing his jobs like

some of his friend who work

in financial institutions in America. With the economy in

the grip of the credit crunch

Australian companies are

finding it increasingly difficult the secure finance

but for start-ups like those

in the software development

or biotech sectors the task

has been made harder with the

cancellation of a #1dz 50

million Government program.

Sienna is a small company

trying to find better, less

invasive, painful ways to

test for cancer. Businesses

like this rely on venture capital but they say they need a top-up from Government

that used to come from the

$150 million commercial Ready

program, but now this has

been cancelled. The sector

says that sent some start-ups

to the wall. It already has.

There are examples of beaut little companies like this

being bought out by major US

corporations with the dollar

being 66 cents we are juicy

targets. At the time of the

last budget Sienna had sent

in a detailed funding bid for money from the program but

the rug was pulled from under

their feet. Despite the

financingal crisis sometimes

the money may be there but it

takes longer the find backers and that delay can be

deadly. The problem is that

year with a small biotech can

kill you so it is not just a

lost year necessarily, you

may not exist because you are

living on a shoe string You

just make more and more

excuses for other people to

put up their hand and say "We want special treatment

want special treatment too"

For some the Government spent

far too long creating

complicated players of

technology that do not mean

the best in business. If we

did subsidise start-ups

because they are losing

money, lots of established

firms lose money, so should

we subsidise every company?

The renewable sector says it is in trouble. The

Government's mandated a

certain amount of renewable

energy through to 2025 but

after that the target false away in the belief the price

of carbon will reflect the

real cost of emissions. The

problem of having the target

falling aware early is that

it does not give enough time

the pay back the project so

when you are going down to

your bank to pick up some

financing the pay back time

is too short and they cannot

give you the money. Pacific

Hydro is one of the country's

biggest renewable countries.

They want a mandated amount

of rue kneeible energy beyond

2025 for a target to be

pushed out a further five

years Your $25 billion of

green investment, your tens

of thousands of green jobs

will not happen.

Productivity Commission

estimated a year ago wetive

away $15.7 billion a year to

industry in about 100

different programs. That is

about $800 per man, woman and

child in Australia. If we got

rid of that and did not tax

people that amount a #2i7

call family would have ?3000

to The renewable and biotech

sectors say they do not want

special treatment they just

want help climbing onto the

level playing field the

question is is supporting

innovation important? That is

a given. From the US, Canada,

Europe we know it works, the

question is the process, how

do we make it more efficient?

The right managers t right

concepts and accountability

on the fund. The Government

says it is still thinking

about a possible replacement

for the commercial Ready

program to help start-ups

bring their ideas the market.

It is no surprise that the

image of CEOs has been badly

damaged by recent episodes as

they are often important

trade as being it of touch

with everyday life. Now one

tell vision advertising

campaign is focussing on the

new reality of former

high-flyers. These days...

AIG against the world. It is

the world against CEOs, take

that corporate jet and shove

it!

Seems like everyone is

mocking the poor CEOs even

the nice Canadians at this CB

Ccom difficult show with

their sponsor and executive

skit Today he can bear I

afford China polian brandy for only

You can ensure that Wayne

and CEO like him... Inspired

by that moment when that auto

company CEOs were grilled by

a Congressman asking Raise

their hand if they flew here

commercial. Let the record

show no hands went up. If

you are not a CEO stop watch

thing video immediately. The

CEO s guide to commercial

jetting. New they need

lessons to deal with airport

terminals Unlike the

terminal where you parked

your old private jet T5 is

filled with regular people.

Roo la, Carl, think of them

as share holers. Creators

of the advertisements found

inspiration in a gossip item

in the pages of the New York

Post. It told of spotting the former chairman of Lehman

Brothers getting instructions

apparently from his driver on

how to work a Jet Blue ticket

machine. That concept ended

up in the advertisement

campaign. There you have it,

easier than writing off a

toxic asset. These two from

the ad agency We have struck

a cultural chord. Just

mocking the CEOs Sorry,

having fun Not sorry but

have to do it. Got to she a

CEO what the inside of a

commercial plane looks like

Every seat has its own

private and exclusive

entertainment system... Carl

that's okay. With so many

companies in the toilet that

is where the fictional CEO

ends up Jet blue is the next

best thing the private air

travel Cheers. Let's look at

the headlines around the

region - the Standards

reports shareholders have

been given approval to

proceed with its Ritz issue. The 'Financial Times' says

commodity prices surged

yesterday as investors sought protection against the high

risk being ever inflation by purchasing everything from

oil to sugar and the Wall

Street Journal' looks at how

the economic downturn has stoked inroads into each

other's markets. That is all

for today. Thank you for

joining me. Enjoy your day.